LONDON, July 16 China National Offshore Oil Corp
(CNOOC) signed its 200th production-sharing contract with a
foreign partner on Tuesday, teaming up with BP to drill
in the South China Sea.
The landmark demonstrates China's drive to develop its own
oil and gas resources at the same time as it buys into
developments around the world.
It also shows the enthusiasm of top international oil
companies like BP, Shell and Exxon Mobil to
deepen ties with the world's fastest-growing oil market and
consumer of over 10 percent of world supplies.
The deal relates to block 54/11 in the deepwater Pearl River
Mouth Basin, which covers 4,586 square kilometres in water
depths from 370 to 2,300 metres, and is close to BP's existing
deepwater interests in Blocks 43/11 and 42/05.
CNOOC will be the operator and will own the rights to 51
percent of any commercial discoveries, but BP will carry the
cost of exploration. Financial terms were not disclosed in
statements from BP and CNOOC's Hong Kong-listed subsidiary CNOOC
"This is a good addition of acreage to our deepwater
portfolio in the South China Sea and deepens our close
relationship with CNOOC. We look forward to some early results,"
said Mike Daly, BP's executive vice president for exploration.